Feb 12, 2013 8:00pm EST
and threatened to throw the country into default. >> narrator: without raising the debt ceiling, the government would be unable to pay its bills. cantor saw the threat of a no vote as leverage to force the president to accept dramatic spending cuts. >> you always look for these moments when the president has to have something passed. but the debt ceiling represents the equivalent of a massive fiscal heart attack. >> narrator: cantor told them no president could ignore the threat. >> it has to be done. it's essential. if you don't raise the debt limit, you can no longer borrow, you can't pay your bills. you default. >> narrator: the new republicans got the message. >> in other words, "look guys, as a team we recognize that this is a leverage point. trust us and we're going to use it so that you fulfill your campaign promises." >> narrator: majority leader cantor had laid out an approach that would put the new congress in direct conflict with the white house. >> it was clear the republicans were going to try to extract some price. and i think the question was, how significant would that price be?
Feb 13, 2013 5:00pm EST
>> and confronting a fiscal cliff and sequestration, debt ceiling default and sequestration in march, government shutdown in april, another potential debt ceiling default in may could perhaps shake the confidence of some ininvesters in our ability to deal with our responsibilities? >> yes, congressman. we think that the perennial crisis mode of fiscal policy over the past few years is reducing people's kfls. how big an effect that is, we don't know. >> thank you, chair. thank you, doctor, for being back with us. i think by anyone's objective measure in this town or country we would consider you a smart man, an intelligent man, a good economist, right? >> thank you, congressman. >> that's why it befuddles me although it's certainly a measure's prerogative, it strikes me that some of us want to speechify rather than engage new conversation through some questioning and that's, for the record, i have so say i really appreciate mr. jeffrey's line of questioning. i'll try to continue on in that regard. speaking of speechifying. we heard that it's impossible to get ourselves out of this debt situation
Feb 12, 2013 8:00pm EST
, and these two questions at the constitutionality of the debt ceiling legislation through the house and senate on the pay issue in payment of the public debt in social security, whether they have enough in their surplus from what people paid regardless of what the government is taken out, or what they have paid in counts. it is count in the deficit numbers picture trying to do something about? who wants to go first? congressman price. >> yeah, the debt ceiling affairs. nobody is talking about paying the data. nobody is talking about not paying the public debt. what were talking about is making sure we get are spending under control so we can create an economy that's vibrant and be able to cover the debt of this great country without the austerity measures we've seen in other countries. so there's two things you got to think about. the debt that's been incurred. yes, the nation is good for that type. and the path forward. are we going to ban that down so they can actually have an economy that is vibrant and create jobs, or are we going to go as far as the eye can see? you could do some point we